A Study on the Types of Microfinance Institutions in Nigeria

• Main Authors: Liman, Nasir, Hashim, Mohd Khairuddin, Arshad, Darwina
• Format: Article
• Published: Toronto, Ontario, Canada 2016
• Subjects: HG Finance
• Online Access: http://repo.uum.edu.my/24315/; http://mayfeb.com/OJS/index.php/BUS/article/view/263
• Institution: Universiti Utara Malaysia

Microfinance institutions (MFIs) are considered important financial institutions in Nigeria. These institutions contribute significantly to the country’s economic as well as social development. Surprisingly, despite their important role, there is little research as well as information on the nature of MFIs in Nigeria, in particular with regard to the types of MFIs found in the country. In an attempt to narrow the information and research gaps in the area of MFIs, this study examines the different types of MFIs operating in Nigeria. The data for the study was collected from 121 MFIs through questionnaires.The results of the analysis of the data indicate that there are not only five specific types of MFIs in Nigeria but also they differ from each other in terms of their ownership, organizational characteristics and lending practices.